On June 15, 2025, ZKJ token lost over 85% of its value in a single day, prompting an investigation by Polyhedra Network. Various factors contributing to the crash were identified.
Causes of ZKJ Token Crash
According to the preliminary report by Polyhedra Network, the main causes of the crash were coordinated liquidity attacks, large transfers of tokens from Wintermute to centralized exchanges (CEX), and the liquidation of leveraged positions. Specifically, liquidity data and sales of the ZKJ token in certain pairs exerted significant pressure on the price.
Market Participants' Actions
The report highlighted six different addresses that withdrew millions of dollars in liquidity and began aggressively selling ZKJ. These included:
* 0x1A29…599: Sold 1.57 million ZKJ, withdrawing approximately $4.3 million worth of LP tokens. * 0x0781…dE7: Converted KOGE to ZKJ and sold 1 million ZKJ for $3.45 million. * 0x6aD3…EBb: Bought 772 thousand ZKJ and sold it within 8 minutes.
Other addresses sold a total of 1.8 million ZKJ in the same minute, leading to further pressure on liquidity.
Preliminary Assessment and Next Steps
Polyhedra Network announced that the events are still in the preliminary evaluation phase, and detailed analysis of all movements on the chain is ongoing. An update to the report is expected in the coming days. The team also attempted to stop the decline by providing about $30 million in liquidity, but this was insufficient to alleviate the price drop.
The events of June 15, 2025, surrounding the ZKJ token have drawn attention to issues of liquidity and market manipulation in the cryptocurrency space. Further information is expected in the coming days from Polyhedra Network regarding the impact of this crisis on the token and its holders.
